Treasury Secretary Sounds Alarm Over Looming Crisis, Calls for Urgent Action

Dec 28, 2024 Komal Das

Treasury Secretary Janet Yellen warned that "extraordinary measures" are needed to avoid a U.S. debt default if Congress doesn't raise the debt ceiling soon

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Yellen's warning comes as Republicans are set to take control in January, after a contentious June 2023 debt limit deal

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The debt limit suspension ends on Jan. 2, forcing Treasury to use "extraordinary measures" to keep paying bills

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Trump, aiming to extend 2017 tax cuts, has urged Congress to abolish the debt ceiling, calling the new deadline a "nasty trap" set by Democrats

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Abolishing the debt ceiling could help both parties, but Democrats oppose it, as it may fund Trump's agenda. It limits paying past debt, not new spending

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Trump faces opposition from far-right Republicans, like Rep. Chip Roy, who oppose any debt ceiling increase. Trump has threatened to support a primary challenge against Roy

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